Michael Saylor Says Strategy's Next $1 Trillion Opportunity Isn't Bitcoin

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Strategy Inc Executive Chairman Michael Saylor has spent years convincing investors that Bitcoin is the company's biggest asset. Now, he says the next trillion-dollar opportunity isn't owning more Bitcoin—it's building a business on top of it. Speaking during Strategy's second-quarter earnings call, Saylor said the company believes its biggest long-term growth opportunity lies in creating what it calls "digital credit." These financial products backed by its Bitcoin holdings that are designed to attract traditional fixed-income investors. "The one thing is short-duration, low-volatility, high-liquidity, stable credit… that's a $1 trillion opportunity for us," Saylor said. Don't Miss: A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast The comments mark an evolution in Strategy's long-term strategy. Rather than focusing solely on accumulating Bitcoin, Saylor is increasingly emphasizing how the company's Bitcoin balance sheet can support an entirely new credit business. Saylor Says Strategy Has Found Its Winning Formula Saylor suggested the company has reached that conclusion after years of experimenting with different ways to finance its Bitcoin purchases. "If I could do it again, I would do no bonds… I would just sell STRC," he said, referring to the company's preferred equity product. He added that Strategy is now "laser-focused on consolidation." His comment signaled that management is moving away from introducing new financing structures and instead plans to scale the products it believes work best. "We probably should expect that we won't have more. We'll probably have less," Saylor said. For investors unfamiliar with Strategy's approach, the idea is relatively simple. The company uses capital raised through its financing products to buy more Bitcoin. It believes creating reliable, income-producing securities backed by that Bitcoin can attract a much broader pool of investors than cryptocurrency alone. It would also allow it to raise additional capital and expand its Bitcoin holdings over time. Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time Why This Matters for Investors Saylor believes the opportunity extends well beyond today's Bitcoin-focused investor base. He argued that trillions of dollars remain invested in traditional credit markets. Bitcoin-backed credit products could eventually attract investors who cannot—or simply do not want to—own Bitcoin directly.